Human Resources

Administration Division

SAVE MORE

Learn all about your retirement benefits and use the checklists on each page to help you prepare for retirement.

SAVE MORE

403(b) vs. 457(b)

For additional retirement savings, you may elect to choose to contribute to the 403(b) or 457(b) plan or both, which provide options for deferring pretax (and in some cases after-tax) income for retirement saving. What chiefly distinguishes the plans are how they consider and penalize withdrawals.

CALCULATOR

403(b) VS. 457(b)

403(b)

457(b) Governmental

ELIGIBILITY

All exempt and non-exempt employees with the exception of student workers may enroll at anytime during employment

All exempt and non-exempt employees with the exception of student workers may enroll at anytime during employment

CONTRIBUTION RATE

Employee elective deferrals

$18,000 in 2017

Age 50 or over + $6,000 (2017)

Employee elective deferrals

$18,000 in 2017

Age 50 or over + $6,000 (2017)

BENEFIT AT RETIREMENT

Account balance accumulated at the time of retirement

Account balance accumulated at the time of retirement

VESTING

Immediately 100% vested (retain ownership interest)

Immediately 100% vested (retain ownership interest)

LOANS

Loans may be permitted

Loans may be permitted

WITHDRAWALS

Withdrawals permitted after a distributable event occurs (e.g., retirement, death, disability, severance from employment)

Inservice withdrawls are allowed at age 59 1/2

Providing that the employee is no longer working, you must begin receiving distributions by April 1 following the later of year of retirement or attainment of age 70½

Hardship withdrawals permitted

Early withdrawals subject to 10% additional tax

In service withdrawals can be used for TRS service purchase

Withdrawals permitted after severance from employment

Providing that the employee is no longer working, you must begin receiving distributions by April 1 following the later of year of retirement or attainment of age 70½

Distribution for unforeseen emergencies allowed

Early withdrawals prior to age 59 ½ are not subject to 10% additional tax

In service withdrawals can be used for TRS service purchase

ROLLOVERS / TRANSFERS

Rollovers permitted to an eligible retirement plan

Transfers permitted from one 403(b) to another 403(b)

Rollovers permitted to an eligible retirement plan

Transfers permitted from one government 457(b) to another government 457(b)

HOW TO ENROLL

To enroll in the 403(b) or 457(b) plans, contact your local Human Resources Department for assistance.

  1. Select a plan (403(b) or 457(b)) or both
  2. Select your Investment Provider
  3. Set up your investment account with your selected provider
  4. Complete a salary reduction agreement and submit to your local HR department along with your account confirmation from your selected retirement Plan Vendor